When the U.S. government runs a deficit, the savings in the market for loanable funds shifts:

A. right, decreasing interest rates and increasing domestic investment and NCO.
B. left, increasing interest rates and decreasing domestic investment and NCO.
C. right, increasing interest rates, and increasing domestic investment and NCO.
D. left, decreasing interest rates and increasing domestic investment and NCO.


Answer: B

Economics

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